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Jared Pomranky ~ Detroit Foreclosures

Small Business Technology – Google Apps

Here you are on a real estate blog and you see a post about small business technology. If you’ve been investing in real estate for awhile, you’re anxious to see what I have to say. If you’re new, you might be wondering what I’m doing. When you’re starting out in real estate, and many experienced investors for that matter, you must treat your real estate investing like a business and not a hobby. To that point, I’ll dive right in.

Technology is critical for small businesses. You don’t want to go overboard with it and you don’t want to spend a lot of money. I’m going to show you a couple of products that are going to help in both of these areas. I might not get to everything in this blog so subscribe to our blog and check out the other suggestions coming soon.

Google Apps Standard Edition
I’ll admit that I’m a little late to the game on this but I was waiting for it to hit the critical mass. A year or more before and Google Apps was not something that would have worked for what we needed. What I’ve seen lately, especially with releases this year, is that Google has a focus on organizations and enterprise software. While you might not be a 2,000 employee shop, what it means is that Google is taking what they’ve learned from focusing on the individual to their enterprise software. That’s good for small and large businesses.

Google Apps Admin Panel
What you find signing up for Google Apps Standard Edition is that it’s free! You get to add up to 50 users to your organization through and administration panel. This is much more than we need but it’s nice to know we can still grow. The administration panel is a big differentiating factor from regular Gmail and Google Apps. As an administrator, I can actually manage the accounts and settings for each user.

Gmail
Alright, this isn’t your grandma’s Gmail. This is email hosting to replace Exchange hosting, which is exactly what my organization did. You get 7gb of storage for the Standard Edition and up to 25gb for the Premier Edition (cost of $50/user per year). 7gb of storage is much more than you’re going to find at any exchange hosting companies, especially for the price. I was a bit skeptical at first but I’m sold on everything now.

For a small business, the switch to Gmail should come with more options, not less. You can configure this to work with your domain so instead of CoolREICompany@gmail.com or “sent on behalf of jared@CoolREICompany.com” you can work just like you do in Exchange as jared@CoolREICompany.com.

Gmail is an amazing tool. They do provide tools for you to sync your calendar with Gmail so you can continue to use a desktop email product like Outlook or Thunderbird but after I got it all setup to sync, I ended up just using Gmail. Gmail is such a great interface with so many features (far too many to list here) that it’s all I use now. It’s easier to use and easier to manage a high email workload with their archiving feature, easy use of labels, and their grouping of emails in threads (this one is the space saver). If I have a single email sent out to multiple people that we then reply back and forth on it 10 times, it shows up as one email instead of 10 in my inbox. I can easily open it up to see everything else. This is a huge productivity builder!

Google Docs
This part of Google Apps replaces your Microsoft Word suite (Word and Excel) and puts it all online. You may wonder how these apps work online and I was definitely skeptical. Google delivers here with very stable apps that auto-save, which negates any Internet connection issues. This is definitely what you need for collaboration within or outside your company. Nothing else comes as close to making it easy to share and collaborate with others.

Some cool features include the ability to share any documents in a folder (new feature) with anyone or even make it public and the ability to make your spreadsheet easy to fill by your users. Do you make the spreadsheet easy to use by just sharing it? Well, I’m sure you know that spreadsheets aren’t always easy to fill by non-spreadsheet users. That’s why Google offers a very easy to create form that integrates with your spreadsheet automatically. You can literally have the form created with a website address for users to submit their answers to the spreadsheet easily in 10 minutes. This is great for an event sign-up or a questionnaire.

Google Calendar
This calendar does a great job of making it easy to use, some cool new features, and the look and feel of a calendar that everyone can instantly use. This is great for events as you can chose to have people share comments and see who else has accepted. In this one way they’ve done a better job than online invitation companies like eVite who have been doing just that for 10 years. Google calendar has all the options you need.

Google Contacts
Although this is still listed in Beta, it functions very well. You can upload your existing contacts, create groups, and this all integrates with your calendar, mail, and Google Talk.

Google Talk
When I was an IT/Business Consultant, I used chat all the time for quick questions/answers. Lately I tried using Skype but it was using up all the resources on my computer, which made it pretty unusable. I just recently installed Google Talk and I have to say, this is the best chat software I have used! It’s fast, uses almost no resources, and it’s intuitive. I can video chat, call people, send voice mails, and even send SMS messages. This all integrates with my Contacts so it already has all the information.

If it sounds like I’m a salesman for Google Apps, I’m not but I easily could be. What makes a great salesman is when they are selling something that they truly believe in and I truly believe in Google Apps as a solid product. They provide the most intuitive interfaces that I’ve ever worked with, the performance is great, and they provide everything I need for free. This is definitely a good base to build your real estate empire!

If you need any help, let me know.

Be a Renegade,
Jared Pomranky
Southeast Michigan Real Estate Club

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Have a Sense of Urgency With Your Investments

Do you have a sense of urgency with your investments or are you taking the lackadaisical approach that most people take with them? Well, I think I looked at my 401k last year and it was down. FAIL. If you haven’t been around, the days of not actively creating or seeking out new investments and methods is gone. Your 401k will NOT be all you need for retirement. Our last meeting had a great speaker and topic on the Infinite Banking Method. Does anyone think that Scott is sitting back and letting someone else manage his retirement? I think not.

Be active in your investments and take action on them right now. Be accountable to yourself. There are great investments everywhere right now and most people are just sitting on cash because they’re scared of losing it. Well, sitting on anything that’s not making at least 6% (conservative) right now is a losing proposition with inflation. Add into that your opportunity cost and you’re losing thousands of dollars each month on your money. You can’t afford to sit on your hands right now.

Where do I invest my money? Well, I did say a sense of urgency, not mass hysteria. Don’t just go plop your money down on the first investment that comes your way. Do your due diligence. Make sure you’re working with reputable company that has experience, can provide references, and has a clear path to returning your principal and interest. There are many conservative investments in real estate and other businesses right now that will leave you well protected with assets. There’s no need for speculation.

Talk to someone that is making money investing and find out what they’re doing. Do you need help? Jeremy, Jeanna, Drew, and myself are currently investing and making money. We will help you with getting started investing and will even partner on deals with you if that’s what it takes to get you going.

You now have no excuse. Create that sense of urgency with your investments and get started. I’m holding you responsible right now! Serious, post a comment and let me know what you’re doing today to make this happen.

Be a Renegade,
Jared Pomranky

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First Time Home Buyer Tax Credit Ending Soon

The article Behind FHA Strains, a Push to Lift Housing from the Wall Street Journal was first brought to my attention by The MAD Investor in this blog post.

Currently the deadline for a buyer to qualify for the first time home buyer credit (maximum of $8,000) is November 30th. This means that closing has to occur before December 1st with the title dated before that date. Anything later and the buyer is out of luck. There has been a lot of speculation that the first time home buyer program would be extended but this WSJ article brings to light quite a few things that tell us otherwise.

The issue comes not with the first time home buyer program but with FHA backed mortgages. The FHA guarantees loans with as little as 3.5% down and with falling prices in many areas, that leads to them insuring properties that are upside down on the mortgage. With FHA loans in default at a record 7.5%, that leaves the FHA with prospect of dwindling reserves and an increased liability for the future. The FHA has a government mandated minimum reserve and if it doesn’t have that reserve, drastic measures could be taken.

Officials worry that the resulting losses will help push the FHA’s reserves below the level required by Congress. The value of those reserves will be revealed in the agency’s annual review due Sept. 30. If they have fallen below the minimum, that could prompt a new round of questions about the role government should play in stabilizing the housing market.

With the prospects of the FHA falling below their minimum reserve amount and mounting pressure from lawmakers to not only have the FHA meet that reserve but decrease spending, it looks like the first time home buyer credit is an easy target for the chopping block. It’s the easiest and most likely as law makers will just have to do nothing with it (i.e. it would have to come up for a new vote to get extended).

What I think about the first time home buyer credit
Overall I feel that the government should not be giving money to people for specialized programs and that less government spending is better. At first this is how I felt with the first time home buyer program but a recent conversation has me thinking the tax payer isn’t getting such a bad deal with this program compared to the millions of other tax payer dollars that are spent each day.

The first time home buyer credit equals more house sales. Increased house sales means more jobs for local regions but that isn’t enough to make it worth while. Increased house sales in an area like Detroit means that there are more foreclosures that are going from vacant non-performing assets to fixed up, lived in houses with people that are paying property taxes and everything else that a person pays for owning a house. There are many dollars that are invested in local regions and governments with this program.

What this means to you is that you have a limited time to let your buyers take advantage of this tax credit. Whether you want to invest in a house and resell it our invest in our program. Our First Time Home Buyer Program helps the buyer utilize the tax credit to use as a down payment by reducing their principal owed. What this means is that you get more money up front on the program. It’s an excellent program to use in Detroit or anywhere in Michigan without the tax credit but it’s a no-brainer with it. Contact us for more information on it so we can get everything closed by November 30th!

Successfully Yours,
Jared Pomranky

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First Time Home Buyer Program & Tax Credit Information

We’re officially rolling out our first time home buyer program to our investors. I know. I know. Many of you have already been working with us on the first time home buyer program but this is the official roll-out!

In addition to our traditional program where you purchase the house from us and we manage the whole process, we are also making the program available to any property YOU own in Michigan! (ask us for details)

There are far too many details to put into this newsletter so I suggest you visit First Time Home Buyer Program & Tax Credit Information to view the details

What do you need to get started?
For our traditional program you will need a $45,000 investment and for our new program where you bring your own house, you just pay for licensing the program (rehabilitation of your property and rehab management are also available)

We have brought together the best brains in the business to not only give you the most profitable first time home buyer program but also the most secure and legal program. Visit First Time Home Buyer Program & Tax Credit Information for more information

Successfully Yours,
Jared Pomranky
Detroit Market Expert

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What will make an Impact on your Business Today?

What’s the one thing you can do for your business today that will have a huge impact on your business? I know, you’re busy. You’re working hard every day but are you focusing on what needs to be completed or are you just completing what comes your way? I could spend the whole day responding to e-mail and doing other low value activities that may add some value to my company but really don’t.

Identifying the high-value activities in your business and completing them is crucial to becoming very successful and moving your business on to the next level. So I ask you again, what is the one activity or project you could start or complete today that would have a huge impact on your business? This is probably a project or activity that you’ve been pushing off because you don’t ever seem to find the time or you always get interrupted with less value adding activities. This is the project that would hands down leave you with a better more well functioning business. You know what I’m talking about.

When looking at projects that are going to make the biggest impact on your business, look at the ones that are going to increase sales, increase your exposure, decrease expenses, decrease your time involved in the business or all four. Make it a point to tackle this project at the beginning of the day and don’t stop until it’s completed. Do you need to check e-mail or make phone calls? Setup two times to check your e-mail and voice mails at 11:00 and at 4:00. Outside of those times you don’t check them and you don’t surf the Internet. Focus.

I know that if you focus on high value projects for your company and don’t spend as much time on the fluff, you’re going to see dramatic results. It may not be easy at first but focus and be determined!

Successfully Yours,
Jared Pomranky

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